High unemployment is France's main economic problem, despite recent improvements.
A top worry of French people, it is a factor affecting France's high suicide rate.
Long-term unemployment causes social exclusion and threatens France's social cohesion.
Joblessness among young people contributes rising crime and violence.
High unemployment sparked numerous demonstrations over the years.
Hundreds protested G-7 policies during the 1996 summit.
In December 1997 and 1998, French unions and jobless workers protested, demanding bonuses of 3,000-5,000 francs and increased benefits.
Rising unemployment in 1996 was partly attributed to the summer season, when graduating youths enter the job market, and France's stagnant economic growth.
The Socialist Party blamed failed government policies.
OECD's 1997 report found France's labor costs for low-skilled workers too high, and recommended a more frugal benefit system and minimum wage reform.
Britain blamed France's over-regulation.
In response to the problem, France raised unemployment benefits by 2.45% in 1996 and enacted a law encouraging businesses to cut working hours and hire more workers.
In 1997, when unemployment peaked at 12.6%, the government planned to spend 15-20 billion francs on employment programs.
The Communist Party proposed a 1,500 francs subsidy for each unemployed worker over age 55.
In 1998, the government announced emergency measures to support jobless people, including an additional 500 million franc unemployment aid package.
The Socialist Prime Minister allocated one billion francs to help the needy, and decided to raise welfare allowances by 3%, an amount protesters thought too small.
Unemployment has gradually declined to 10.6% in 2000.
